Controlling
Introduction: This unit deals about Controlling - Process of controlling; Making Controlling Effective; Techniques of Controlling.
As seen from the previous case study, we identified the primary issue in the Mahindra & Mahindra is lack of proper control over its products. Controlling is the measurement and correction of performance in order to accomplish company’s aims and objectives. Also, planning and controlling are inseparable (Siamese twins) because we can’t decide whether we are going in the right direction unless we know the destination. Without objectives and plans, control is not possible because performance has to be measured against some established criteria.
The control function consists of three procedures i.e.
i. Measuring actual performance, ii. Comparing actual performance to standards, iii. Correcting variations from standards and plans.
Basic process of Control:
The managerial process of control consists of 6 steps. The top management has to decide what elements have to be monitored, evaluated and controlled.
Step 1: Key areas to be monitored
Macro environment, Mission and objectives, Industry Environment, Internal Operations need to be monitored as they are frequently vulnerable to changes.
Step 2: Establishing Standards
Since plans are the yardsticks against which managers devise controls. The first step in the control process is to establish plans. And since plans cannot be supervised by the manager for 24/7 some selected points in the plans are selected as standards so that managers can check these standards. The standards may include:
Quality of products
Creativity
Return on investment
Quantity of units produced
Step 3: Measuring Performance
The measurement of performance against standards should be done on forward looking basis so as to detect deviations in advance and avoid by appropriate actions. Performance can be measured in quantitative terms (reports and statements) and qualitative terms (managerial observations).
Step 4: Compare
As seen from the previous case study, we identified the primary issue in the Mahindra & Mahindra is lack of proper control over its products. Controlling is the measurement and correction of performance in order to accomplish company’s aims and objectives. Also, planning and controlling are inseparable (Siamese twins) because we can’t decide whether we are going in the right direction unless we know the destination. Without objectives and plans, control is not possible because performance has to be measured against some established criteria.
The control function consists of three procedures i.e.
i. Measuring actual performance, ii. Comparing actual performance to standards, iii. Correcting variations from standards and plans.
Basic process of Control:
The managerial process of control consists of 6 steps. The top management has to decide what elements have to be monitored, evaluated and controlled.
Step 1: Key areas to be monitored
Macro environment, Mission and objectives, Industry Environment, Internal Operations need to be monitored as they are frequently vulnerable to changes.
Step 2: Establishing Standards
Since plans are the yardsticks against which managers devise controls. The first step in the control process is to establish plans. And since plans cannot be supervised by the manager for 24/7 some selected points in the plans are selected as standards so that managers can check these standards. The standards may include:
Quality of products
Creativity
Return on investment
Quantity of units produced
Step 3: Measuring Performance
The measurement of performance against standards should be done on forward looking basis so as to detect deviations in advance and avoid by appropriate actions. Performance can be measured in quantitative terms (reports and statements) and qualitative terms (managerial observations).
Step 4: Compare